–with new Local Content Legislation

EVERY oil company and its sub-contractor must provide to the government a Local Content Master Plan that lays out the companies’ overall objectives.

This is a requirement included in the government’s Local Content Bill, which was tabled in the National Assembly last week.

In the Bill, it is stated that every master plan must include an employment, procurement and capacity development sub-plans; the quality and quantity criteria required for the supply of goods and the provision of services, and a statement and estimate of the value of local content to be acquired, delivered and rendered for.

This plan shall be submitted to the Minister of Natural Resources for approval within four months of the operation of the Local Content Act or within four months of the grant of a licence or transfer for interest in a licence, or entering into a petroleum agreement with the minister to conduct operations.

The Bill further states that a sub-contractor shall submit its plan to the Natural Resources Minister within four months of entering into an agreement with a contractor, another sub-contractor or licensee for the term of the agreement.

The Local Content Master Plan will also be submitted to the Local Content Secretariat. In the event that a master plan needs to be modified, this can be done after the contractor, sub-contractor or licensee makes a submission to the minister. The minister, after consultation with the secretariat, will review and approve.

Meanwhile, an annual Local Content Plan including the details of the master plan shall be submitted to the minister. Further, the annual plan shall be submitted within 60 days prior to, but no later than 30 days after the beginning of each calendar year.

The Local Content Bill lays out 40 services that oil companies and their sub-contractors must procure from Guyanese companies and Guyanese nationals by the end of 2022.

For instance, by the end of the upcoming year, Guyanese should provide 90 per cent of office space rental and accommodation services; 90 per cent for janitorial, laundry, catering services; 95 per cent pest control services; 25 per cent medical services; 20 per cent aviation and support services and 75 per cent local food supply, among other things.

As part of the Local Content Bill, the government is proposing the establishment of a Local Content Register, said to be developed and maintained by the Local Content Secretariat. This register will comprise Guyanese for employment and Guyanese nationals and Guyanese companies from which goods and services may be procured.

This Bill is still to be debated in the National Assembly. The government has committed to ensuring that it is passed and made into law before 2022.

(DPI)